The Viking Corporation has the following items of income for 2020:

Operating income ..............................................................$350,000

Dividend income (12 percent-owned corporations) .........15,000

Long-term capital gains .........................................................9,000

Short-term capital gains ........................................................3,000

Capital loss carryover from 2019 .........................................8,000

Charitable cash contributions ............................................12,000

Net operating loss carryover from 2019 ...........................35,000

a. Calculate the corporation’s 2020 taxable income and its tax liability.

b. Assume that Viking is, and always has been, an S corporation wholly owned by Fran, a single taxpayer with no other income or deductions. Will either Viking Corporation or Fran realize any tax savings, given the income and liability determined in part a? Explain.